via ZSE to create new bourse | The Herald 16 October 2014
The Zimbabwe Stock Exchange intends to create a new bourse, dubbed the Zimbabwe Emerging Enterprise Market (ZEEM), where emerging companies with growth potential can list, an official said yesterday. ZSE chief executive Alban Chirume said a provisional draft of listing requirements had been crafted and stakeholder input for the final draft was now being sought.
He said input being sought included conditions for listing, documents to be submitted and published and fees to be charged.
“The ZSE seeks to increase its product range through the establishment of a regulated platform to list entities with growth potential. The proposed product, which has been aptly named ZEEM, is an extension of the ZSE official list,” he said.
“As such, the ZEEM Listings Rules will be a section in the Revised Listings Rules.”
The creation of a secondary bourse is viewed as a means to facilitate companies within the small and medium enterprises range to mobilise capital on the open market to inject into the growth and expansion of their businesses.
Mr Chirume said securities of entities admitted on the ZEEM would be traded on the ZSE.
“However, by virtue of their sizes, ZEEM entities will be subject to less stringent requirements.
“The platform, which is subject to regulatory approvals, will therefore afford smaller entities which do not meet the current listing requirements, the opportunity to list,” he said.
Mr Chirume said the initiative was in line with regional and international trends where alternative markets are set up to nurture smaller companies whilst broadening the investment choices available to investors.
Established in 1896, the ZSE currently has 66 listed companies with an aggregate market capitalisation of over $4billion in 18 different economic sectors including technology, banking and financial services, beverages, building and associated industries, agriculture and mining. – New Ziana.
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